Parrallel imports in the news again

[AuFairlaneV8]

http://www.carsales.com.au/news/2015...44?csn_tn=true

Some legitimate concerns raised by MB but Im all for it we have dropped protections for locally made cars, so only seems fair we drop protections for local distributors.

[malazn mafia]

Come 2016 when Falcon is laid to rest, let us import whatever car we want. There's nothing left to protect and importers like MB Australia shouldnt be allowed to markup garden variety cars into "luxury" cars when they do no local r&d.

[GasoLane]

Scare tactics. The same could be said for any privately imported car.

[Havoc]

simple the gov will do whatever s best for business's like usual **** the regular person they always come last.

[Franco Cozzo]

They were rubbing their hands laughing that Ford, Holden and Toyota have gone under, less competition for them, no one in their market.

Now that they are the ones in the crosshairs they're coming out having a right old sook about it.

[blue sleeper]

So....

[1TUFFUTE]

Isn't it nice how MB seem to have nothing but concern and the best intentions for us the consumer.

They could of at least protested with a little less blatant self focus.
What an odd thing for MB to make public!!!

[The Yeti]

And it's funny how MB have their own used vehicle importing arm

[smoo]

Originally Posted by malazn mafia

Come 2016 when Falcon is laid to rest, let us import whatever car we want. There's nothing left to protect and importers like MB Australia shouldnt be allowed to markup garden variety cars into "luxury" cars when they do no local r&d.

I would be careful what you wish for, because NZ has had open door import policies since local manufacturer ceased in the mid 1990s. It is nothing to get excited about. Most cars imported have been sold there new, so the market becomes flooded with everything, from Toyota Yaris, Rav4 to WRXs, 3,5,7 Series, C,E,S Classes to Porsche 911, Cayenne etc.
It kills any incentive to buy new and keep for a while as within 5 years importers will have imported the same model driving down resale... If you think Euro depreciation is bad wait until they open the flood gates. For example BF Fairmont Ghia or VZ Calais commands a higher asking price than an E60 530/545i or E350/500 of the same year.
Aussie cars NZ hold their value very well as Kiwi importers can't make money from them, which is why I had no worries buying a FG XR8 as I could probably get the same price for it 18 months on.
I had a JK Wrangler and while I sold it to use the money for something else, I was lucky as I'd off loaded it before the importers got their hands on them, i guess if I were to sell the same Jeep now I'd be 1/3 down on my sale price as they are now arriving by the boat load.

The idea of cheap imported RS6s, M5s, E63s etc may appeal, but in reality these heaps of **** will make up the LARGE majority of imports as they do in NZ....

[malazn mafia]

Originally Posted by smoo

It kills any incentive to buy new and keep for a while as within 5 years importers will have imported the same model driving down resale... If you think Euro depreciation is bad wait until they open the flood gates. For example BF Fairmont Ghia or VZ Calais commands a higher asking price than an E60 530/545i or E350/500 of the same year.
Aussie cars NZ hold their value very well as Kiwi importers can't make money from them, which is why I had no worries buying a FG XR8 as I could probably get the same price for it 18 months on.
I had a JK Wrangler and while I sold it to use the money for something else, I was lucky as I'd off loaded it before the importers got their hands on them, i guess if I were to sell the same Jeep now I'd be 1/3 down on my sale price as they are now arriving by the boat load.

The idea of cheap imported RS6s, M5s, E63s etc may appeal, but in reality these heaps of **** will make up the LARGE majority of imports as they do in NZ....

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Mm.. I'd rather score the same M5 or E63 off a boat for peanuts, than line the pockets of my local MB or BMW dealer snob and in 3 years the car has depreciated to its new price overseas..

[Express]

Car makers slam 'appalling' parallel imports proposal
April 16, 2015
David McCowen
Motoring Writer

Reforms likely to benefit the wealthiest top one per cent of drivers.


Porsche Australia has hit out against a proposal allowing people to buy new cars from overseas.

The automotive industry has slammed a controversial proposal allowing motorists to import new cars outside established frameworks, saying it will only benefit the wealthiest one per cent of motorists.

Federal Assistant Minister for Infrastructure Jamie Briggs announced on Thursday the government was driving forward with plans to deregulate the importation of new cars.

The proposal will go to cabinet ahead of a decision later this year.

Mr Briggs said the government aimed to allow consumer access to vehicles "at the lowest possible cost".

Cutthroat competition in the Australian automotive industry makes more affordable models such as the Toyota Corolla competitive with right-hand-drive overseas markets in the UK and Japan, while many high-end luxury cars imported in smaller numbers cost more locally than in larger markets.

"Cabinet has now agreed to consider possible options to reduce restrictions on the personal importation of new vehicles after further public consultation is undertaken," he said.

"The Australian Government is not inclined to take the same approach with used vehicles."

Luxury cars such as the Porsche 911 range can be more than $50,000 cheaper in overseas markets.

Porsche Cars Australia spokesman Paul Ellis said the company "vehemently opposes" changes to import rules.

"This is going to bring chaos to the marketplace," he said, "the short-sightedness of federal government is appalling.

"If this is allowed to go ahead it will bring into the country cars with questionable ownership history and questionable service history. It will also jeopardise resale values of existing cars that meet the stringent quality standards put in place for new vehicle sales in Australia."

Ellis said motorists are unlikely to be able to buy a cheaper Porsche from overseas outlets as the company's German headquarters do not sell direct to customers and dealers around the world are banned from delivering cars that will be exported overseas.

The same is true for other car companies such as Mercedes-Benz.

Federal Chamber of Automotive Industries president Tony Weber said the Government proposal was misguided.

"I am bewildered that Assistant Infrastructure Minister Jamie Briggs can take such a simplistic view of an issue and appear to completely discount the advice of the industry it directly affects," he said.

"The reality is that the whole of life cost of a vehicle under this scenario will become a significant burden for those who choose to import vehicles from overseas dealers, made for another country's conditions.

"The cars may look the same on the outside, but there are differences when you lift the bonnet or look deeper into the interconnected systems."

While car companies have raised vocal complaints surrounding the proposal, Australian Automotive Association chief executive Michael Bradley said the government should not put their views ahead of consumers.

"It is important the interests of the consumer are front and centre of the car buying process through improved competition and affordability," he said.

"The relaxation of vehicle import restrictions has the potential to improve motoring affordability with our analysis showing many new vehicles are more expensive in Australia than other comparable markets."

But Mercedes-Benz spokesman David McCarthy said the FCAI compared Australian prices with overseas markets and found "realistically, under $150,000, there was nothing in it".

"It is a very competitive market and the consumer is protected," he said.

"If you're going to mess with that you have to ask why.

"Who is going to benefit? You're talking about less than two per cent of the market."

http://www.drive.com.au/motor-news/c...16-1mme3g.html

[new2ford]

I can't speak for other brands but I've examined BMW international pricing in detail and the difference is actually not as much as it seems. What they make money on overseas is optioning. The base prices you see overseas are the bog standard cars without options - and they're pretty minimalistic and you'd get more as standard on a bog Toyota.

In Australia they can't successfully sell these base models, because all other brands nowadays have the options as part of the standard kit. So when BMW import cars into Australia they're pre-loaded with a wide range of options in order to be attractive and competitive and are sold in this way as "base" models. Naturally there are still a number of further options in the catalogue that buyers can add if they want to.

I'm not saying there still isn't an element of "premium" gouge, but the discrepancy isn't as much as it appears.

[Polyal]

I think there is certainly something bogus with the way cars are priced in Australia.

In saying that I dont think this is the answer as such. Its going to create a mine field in the used car market.

The biggest thing to note for me is if this goes ahead what a joke ADR's have been all this time which most of us knew.

[Franco Cozzo]

Will this relax existing import laws for second hand cars, for example Jap Imports? They have to be on the SEVS list before you can import them and you can't import what a manufacturer sold in our market.

[new2ford]

Originally Posted by Polyal

I think there is certainly something bogus with the way cars are priced in Australia.

In saying that I dont think this is the answer as such. Its going to create a mine field in the used car market.

The biggest thing to note for me is if this goes ahead what a joke ADR's have been all this time which most of us knew.

There's something bogus about the way everything is priced in Australia! Try grocery prices in your supermarket 3 to 4X what they are in Germany even though our disposable income is less than twice as high. Everybody gouges Australian consumers, it's one big obscene rort.

ADR's have always been double standard. How many years did Australian manufactured cars dutifully fit rear lap sash seatbelts while cars like Honda Odessey could be imported with dangerous lap belts only?

[Vesper Martini]

In NZ imported BMW's would come from Japan, but mostly you will see strange looking people movers like the Nissan above.
An importer will bring in what he can sell,
The High end Euro market sell to people with Money, mostly they will still buy new

[TheSneakiness]

As long as law is bought in that if people privately import a car that:

a. It's already manufactured as RHD
b. The importer (broker or individual) pays to have it converted to RHD

Then I don't have an issue with it as they will have to self warrant parts and running costs.

[1TUFFUTE]

Originally Posted by new2ford

I can't speak for other brands but I've examined BMW international pricing in detail and the difference is actually not as much as it seems. What they make money on overseas is optioning. The base prices you see overseas are the bog standard cars without options - and they're pretty minimalistic and you'd get more as standard on a bog Toyota.

In Australia they can't successfully sell these base models, because all other brands nowadays have the options as part of the standard kit. So when BMW import cars into Australia they're pre-loaded with a wide range of options in order to be attractive and competitive and are sold in this way as "base" models. Naturally there are still a number of further options in the catalogue that buyers can add if they want to.

I'm not saying there still isn't an element of "premium" gouge, but the discrepancy isn't as much as it appears.

No doubt this is why aus is getting the new mustang with the performance pack allready standard on our models. A few people baulked at the not so bad initial price....until they realized it included everything bar a paint option

[Sioso]

This wouldn't be an issue if prices were comparable to begin with.
Being charged double and close to triple in some instances (Porsche) is the reason the dealers are whingeing - of course buyers will start importing.
Taking into account vehicle options, the $AUD and our small market still doesn't justify a disparity of this magnitude.
Sharpen up your pricing and quick or risk losing everything - surely there is a decent profit still to be made.

[Polyal]

It might mean dealers will take a hit but it will prop up specialized garages to maintain the cars if dealerships refuse.

[rancidpunx]

High end dealers will be kicking up a stink because it will eat into their profits. If somebody can get a 911 from overseas cheaper its certainly going to worth investigating. That will bring down the second hand value of cars here as well, another revenue hit for dealers. They will be worth more if they are Australian delivered but all of a sudden high end second hand values become a lot more affordable.

Couple of examples
Bought in NZ
http://www.trademe.co.nz/motors/used...-846114610.htm
IN Australia
http://www.carsales.com.au/dealer/de...16843384/?Cr=0

Another one
NZ
http://www.trademe.co.nz/motors/used...-823801127.htm

Australia
http://www.carsales.com.au/dealer/de...17401775/?Cr=1

Thats just a couple of examples quickly on the net from our next door neighbours. Transporting a car over the ditch is only $2k.

There will be issues in terms of history and what not but people will definitely take the risk second hand and companies will pop up that specialise in sourcing overseas cars, buying them new and then selling that brand new car to Aussie clients. My partners farther in NZ bought a Japanese 3 series that had been written off there. It was dirt cheap and fixed up so you couldn't tell and all of a sudden he is the man about town with his new Beemer and it had cost him bugger all He certainly felt like he was winning. Only thing they had to do was change the radio to receive the correct frequencies.
It will be a minefield but some nice cars will certainly become affordable. I dont think too many people will take a punt with Entry level cars like a 3 series or C class, but AMG and M cars? The other side of the token though is all the ****boxes that will find their way in. Old Jap cars etc.

[Polyal]

Would be nice if they priced capped it, say minimum $20k spend on new cars.

Although id love to import some of the JDM stuff.

[CyberWasp]

MB, open a car making factory here or stop complaining.

[Buttnekid]

Of course Porsche Oz and MB Oz are bitching, they stand to lose tens of thousands.

Just do a rough comparison on a 991, 911 Turbo S with no options - new in UK 140,000 pounds, or 268,000 AUD. Add LCT on cost > 60,000 = (268,000-60,000)*0.33 = 68,640, subtotal is now $336,640, add freight and insurance (being generous): $4,000, you re at $340,000, add GST of 10%, you are now at $374,000, add stamp and rego, you are at $415,000 - that same car here: $486,000, that is a $71,000

[new2ford]

Originally Posted by rancidpunx

My partners farther in NZ bought a Japanese 3 series that had been written off there. It was dirt cheap and fixed up so you couldn't tell and all of a sudden he is the man about town with his new Beemer and it had cost him bugger all

...... until the first time something goes wrong!

Before anybody sets off down that path I recommend they find a good mechanic who specialises in the marque and has access to cheap spare parts. You can bet the official dealers won't want to know about it, except at a big price.

I recall a good personal example of international companies charging what they think each country will bear, even though the product costs the same to produce - in this case an online product with no country-specific "manufacturing" costs. I wanted to get some different maps for my car's satnav and set out logging in and exploring the supplier's international website.

I found the identical same product was charged at $110 for Australians, $50 for UK and $30 for Czech Republic. Of course the Czech one was in Czech, so I set up a different account and bought the one from the UK. The whole explosion in international internet shopping is also based on this. So there is no doubt that the multinational car companies are charging Australians "what the market will bear" and they will resist what they see as a threat to this cosy money-making venture.

[SumoDog68]

Parallel import refers to new product(cars in this case) where private buyer would be allowed to import the car from overseas in turn bypassing the local distributor . Government is obviously thinking that cars are too expensive locally and that is pretty easy to verify if you compare prices of same vehicles in other countries.

[SumoDog68]

Originally Posted by Big Damo

Will this relax existing import laws for second hand cars, for example Jap Imports? They have to be on the SEVS list before you can import them and you can't import what a manufacturer sold in our market.

Parallel imports refer to new cars.

[Polyal]

Im surprised the gov is even talking about it...while its not billions the LCT grab would add up.

[SumoDog68]

Originally Posted by new2ford

I can't speak for other brands but I've examined BMW international pricing in detail and the difference is actually not as much as it seems. What they make money on overseas is optioning. The base prices you see overseas are the bog standard cars without options - and they're pretty minimalistic and you'd get more as standard on a bog Toyota.

In Australia they can't successfully sell these base models, because all other brands nowadays have the options as part of the standard kit. So when BMW import cars into Australia they're pre-loaded with a wide range of options in order to be attractive and competitive and are sold in this way as "base" models. Naturally there are still a number of further options in the catalogue that buyers can add if they want to.

I'm not saying there still isn't an element of "premium" gouge, but the discrepancy isn't as much as it appears.

For a bit of fun I pretty much selected every option on M3 sedan on BMW USA website and came up to 75k $ US . Our M3 starts at a around 173k $ AUD for less optioned car. Not much difference you say ?

[Polyal]

^^You could drop $10k on spares parts and extend your garage with the savings..LOL